Madhan,

>>>It breaks at my DataAccess Project where i am referencing the
Exception Management project which in turn refrences two exception
blocks dlls in the assembly folders.

This sounds like your projects being built in the solution are referencing each others 
outputs rather than each referencing some other DLLs.  That is a much subtler problem 
than <assemblyfolders> is meant to deal with.  I haven't had to deal with that 
complexity.  Yet.

If someone else with experience doesn't pop up and suggest something, can you use 
three <solution>s instead of one.  In that way, the second and third solutions can use 
<referenceprojects> or <assemblyfolders> to pick up the DLLs they need from the 
previously completed solutions.

Merrill




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